GM rules out competition from Tata Motors' Rs 1-lakh car

PTINov 1, 2007, 09.55pm IST

MUMBAI: Automobile major, General Motors the maker of Chevrolet on Thursday ruled out competition from the proposed Rs 1-lakh car from the Tata Motors stable, saying it will focus on other variants of the segment.

"The mini-car segment is not a segment. This includes several segments and several customers. There is no need to battle with the Rs 1-lakh car," GM's President and Managing Director, Karl Slym, told reporters here during the launch of its new luxury sedan - Chevrolet Aveo 1.4 LS Limited Edition.

Tata Motor's Rs 1-lakh car is expected to hit the market next year and will be targetting the country's growing middle-class segment.

GM, which has eyed a 10-per cent market share in India, has plans to roll out a Sports Utility Vehicle (SUV) in the future, said Slym, adding "the company is looking at different segments of the customer-base ranging from first-time buyers to those who opt for their second-car."

The company will set up its second plant at Talegaon, Maharashtra, while two new parts-distribution centres have already been set up in Maharashtra and Delhi, to supplement the two existing centres in Gujarat and Tamil Nadu.

Chevrolet Aveo 1.4 LS, which has followed the successful launch of Chevrolet-Spark early this year, has been priced at Rs 6.49-lakh (ex-showroom Delhi).

The Pune plant, which will have an annual production capacity of 1,40,000 vehicles, will be functional by this year-end.

General Motors, which has its biggest national market in the US, is the manufacturer of popular brands like Optra, Aveo, SRV, Aveo U-VA, Spark and Tavera.